Rowan Companies plc recently received a contract from CGX Resources for the Ralph Coffman rig. The 240-C Class jack-up, with the capacity to perform in harsh environments, will operate one well for roughly 60 days in Guyana.
Currently, the jack-up is hired in the Gulf of Mexico by oil and natural gas explorer GulfSlope Energy. Rowan expects Ralph Coffman to start activities under the new contract in second-quarter 2019.
December seems to be a good time for Rowan as early this month, Exxon Mobil Corporation (XOM - Free Report) showed interest to use another drillship — Rowan Relentless — of the offshore contract driller for an extended period. The largest publicly traded energy player exercised options so that it will be utilizing the R-Class ultra-deepwater drillship of Rowan in the U.S. Gulf of Mexico for 60 more days.
Apart from the awards, Rowan already has a healthy contract backlog. Notably, the company’s recent merger agreement with Ensco plc will strengthen the backlog position which has been estimated by the companies at roughly $2.7 billion. Overall, Rowan is well placed to boost cashflows, given its contract awards and revenue backlog.
Despite the positives, Rowan has lost 36.9% in the past year against the 33.7% decline of the stocks belonging to the industry.
Currently, Rowan carries a Zacks Rank #3 (Hold). A better-ranked player in the oil and gas drilling space is Noble Corporation (NE - Free Report) , with a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Noble beat the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 4.1%.
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Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Rowan Companies plc recently received a contract from CGX Resources for the Ralph Coffman rig. The 240-C Class jack-up, with the capacity to perform in harsh environments, will operate one well for roughly 60 days in Guyana.
Currently, the jack-up is hired in the Gulf of Mexico by oil and natural gas explorer GulfSlope Energy. Rowan expects Ralph Coffman to start activities under the new contract in second-quarter 2019.
December seems to be a good time for Rowan as early this month, Exxon Mobil Corporation (XOM - Free Report) showed interest to use another drillship — Rowan Relentless — of the offshore contract driller for an extended period. The largest publicly traded energy player exercised options so that it will be utilizing the R-Class ultra-deepwater drillship of Rowan in the U.S. Gulf of Mexico for 60 more days.
Apart from the awards, Rowan already has a healthy contract backlog. Notably, the company’s recent merger agreement with Ensco plc will strengthen the backlog position which has been estimated by the companies at roughly $2.7 billion. Overall, Rowan is well placed to boost cashflows, given its contract awards and revenue backlog.
Despite the positives, Rowan has lost 36.9% in the past year against the 33.7% decline of the stocks belonging to the industry.
Currently, Rowan carries a Zacks Rank #3 (Hold). A better-ranked player in the oil and gas drilling space is Noble Corporation (NE - Free Report) , with a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Noble beat the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 4.1%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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